Bio-based polyamide (PA11) and water-soluble polyethylene oxide (PEO) were used to prepare an 80/20 wt/wt immiscible blend. Ternary nanocomposites were obtained with incorporation of 1 wt% of clay, without and with injection of water during extrusion. Transmission electron microscopy showed that both unmodified and organomodified clay adopted a selective localization in PA11 matrix. Despite the high viscosity of PEO, water-assisted extrusion led to the migration of part of organoclay to the minor phase. Scanning electron microscopy analysis revealed refined droplet morphology in the presence of organoclay, while the injection of water had limited effect on the droplet size. The van Gurp-Palmen analysis indicated a slight decrease of the PA11/PEO interfacial tension. Water-assisted extrusion process improved the rheological properties of nanocomposites due to the migration of clay and its better dispersion state. The λ.H(λ) spectra confirmed the effect of the migration of clay on the relaxation behaviour of blends.